Alberta
The Awed Couple: Can Ottawa Force Alberta To Stay In Its Lane?
Fact: Alberta and Saskatchewan were to enter Confederation in 1905 as a province named Buffalo. But Sir Wilfrid Laurier feared a landmass that big would threaten the domination of Quebec and Ontario in Canada. And so Buffalo was split into the two provinces we know today.
Of all the riddles that make up Canada’s current prime minister one of the most intriguing is how the grandson of a man, Charles-Émile Trudeau, who made his fortune in Montreal gas stations is now hellbent on destroying the same industry.
In this obsession to end fossil fuels, Trudeau does have the company of many other heirs to fortunes created by oil and its products. The ranks of Green NGOs and political movements are thick with names like Rockefeller, Getty, Morgan, Flagler and more, heirs with a guilty conscience about perceived climate-change destruction.
But while most of these families have chosen discreet roles in their quest, Trudeau’s climate infatuation has propelled him to prime minister of Canada since 2015. In that time “Sunny Ways” Justin has obsessively pursued his goal of transitioning Canada from the fossil-fuel giant to an imagined Shangri-la of gentle breezes and warm sunshine.
Nothing can shake him of his messianic role as saviour of the Frozen North. Likewise, no public disgrace or controversy can shake his loyal supporters who supported his father in the same manner. Buttressed by the lapdog NDP caucus he spouts buckets of enviro-nonsense to a docile media (which he has bribed to stay quiet).
Because subtlety is not a strong suit he even named a former Greenpeace zealot and convicted felon as his Environment minister. Which has naturally put him directly at odds with that portion of the country that exploits fossil fuels and (don’t tell anybody) floats the boat of federal budgets.
So when Justin proposed a Canadian Sustainable Jobs Act to turn energy workers into code writers and social workers by 2035 there was a degree of pushback amongst those who would lose their livelihoods. That plan was revealed last week by EnerCan (who makes up this dreck?) minister Jonathan Wilkinson.
Promising to convert Calgary’s public transit to all-electric, Wilkinson (former leader of the New Democratic Party‘s youth wing in Saskatchewan) proposed the ‘Sustainable Jobs Act’ advisory council that will provide the federal government with recommendations on how to support the Canadian workforce during transition to a ‘net-zero economy.” You can guess who’ll be on the advisory council, but don’t count on any Ford F-150 drivers.
Enter Danielle Smith, newly re-elected premier of Alberta. Smith and her advisors have declared as unworkable the federal government’s unilateral prescription for a carbon-neutral society by 2050. While they recognize the need for transition the Alberta solution is predictably less draconian than Trudeau’s Pol Pot prescription for moving the population back to a more bucolic lifestyle.
Specifically, Alberta wants “to achieve a carbon-neutral energy economy by 2050, primarily through investment in emissions-reduction technologies and the increased export of Alberta LNG to replace higher-emitting fuels internationally.” (Presumably Alberta will be joined by Saskatchewan in this pushback.)
Then came the hammer. “As the development of Alberta’s natural resources and the regulation of our energy sector workforce are constitutional rights and the responsibility of Alberta, any recommendations provided by this new federal advisory council must align with Alberta’s Emissions Reduction and Energy Development Plan.”
Translation: Federal legislation has to be in synch with provincial plans, not the other way around. In short, try to impose some Michael Mann fantasy on the province and it’s a no-go. Don’t like it? See you in court. In Alberta. Not Ottawa.
Will this constitutional gambit work? While Smith’s mandate from the recent election is hardly rock-solid, she does have the benefit of time in her four-year term. Trudeau has no such luxury, and launching a court case in Alberta would likely stretch past his mandate ending next year. Yes, the impertinence of Alberta would play well with his base in the 514/613/416. But let’s be honest, they are voting Trudeau even if he (in the words of Donald Trump) grabs them by the privates.
One thing you can be assured of when it comes to the PM. He will not be forcing any Canadian Sustainable Jobs Act on the Ontario auto industry to aid its transition to EV vehicles. There will be no helpful suggestions on the death of the automobile for the new mutlti-billion dollar VW battery plants cashing federal cheques in Windsor. He knows his voting base won’t buy it. But those Alberta saps?
The telling impact of this jurisdictional fight will be where Trudeau’s rival, Pierre Poilievre, comes down on the transition issue. With his election depending on the swaths of voters in the GTA shoulder ridings— where Trudeau’s mooting about crybaby Alberta will get a full airing— does he lend his support to Smith’s pushback?
Put simply, is backing Alberta sovereignty in the oil patch a vote-loser for a party still looking past “Hate Trudeau” as an election platform? You could see Poilievre rationalizing that he’ll get the seats in the West no matter what, so why not leave Trudeau to wrassle the Alberta bear alone?
Risky for sure. But if he gets the PMO seat in 2024 Poilievre can always play kiss-and-make-up later with Smith and her government. Can’t wait.
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Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. Inexact Science: The Six Most Compelling Draft Years In NHL History, his new book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via http://brucedowbigginbooks.ca/book-personalaccount.aspx
Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:
“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.
“This is precisely what I have been advocating for from the U.S. administration for months.
“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.
“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.
“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.
“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”
From the Fraser Institute
By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.
Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.
In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.
Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).
Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.
The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.
Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.
Jock Finlayson
Senior Fellow, Fraser Institute
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